The multitrillion-dollar global question remains: Is the emergence of BRICS a signal that we have truly entered a new multipolar world? Of neoliberal dragons, Eurasian wet dreams, and Robocop fantasies...

Goldman Sachs—via economist Jim O’Neill—invented the concept of a rising new bloc on the planet: BRICS (Brazil, Russia, India, China, South Africa). Some cynics couldn’t help calling it the “Bloody Ridiculous Investment Concept.”

Not really. Goldman now expects the BRICS countries to account for almost 40% of global gross domestic product (GDP) by 2050, and to include four of the world’s top five economies.

Soon, in fact, that acronym may have to expand to include Turkey, Indonesia, South Korea and, yes, nuclear Iran: BRIIICTSS? Despite its well-known problems as a nation under economic siege, Iran is also motoring along as part of the N-11, yet another distilled concept. (It stands for the next 11 emerging economies.)

The multitrillion-dollar global question remains: Is the emergence of BRICS a signal that we have truly entered a new multipolar world?

that we either are about to cross or have already crossed a “historical watershed” taking us far beyond the post-Cold War unipolar world of “the sole superpower.” There are, argues Kennedy, four main reasons for that: the slow erosion of the U.S. dollar (formerly 85% of global reserves, now less than 60%), the “paralysis of the European project,” Asia rising (the end of 500 years of Western hegemony), and the decrepitude of the United Nations.

The Group of Eight (G-8) is already increasingly irrelevant. The G-20, which includes the BRICS, might, however, prove to be the real thing. But there’s much to be done to cross that watershed rather than simply be swept over it willy-nilly: the reform of the U.N. Security Council, and above all, the reform of the Bretton Woods system, especially those two crucial institutions, the International Monetary Fund (IMF) and the World Bank.

On the other hand, willy-nilly may prove the way of the world. After all, as emerging superstars, the BRICS have a ton of problems. True, in only the last seven years Brazil has added 40 million people as middle-class consumers; by 2016, it will have invested another $900 billion—more than a third of its GDP—in energy and infrastructure; and it’s not as exposed as some BRICS members to the imponderables of world trade, since its exports are only 11% of GDP, even less than the U.S.

Still, the key problem remains the same: lack of good management, not to mention a swamp of corruption. Brazil’s brazen new monied class is turning out to be no less corrupt than the old, arrogant, comprador elites that used to run the country.

In India, the choice seems to be between manageable and unmanageable chaos. The corruption of the country’s political elite is reaching bizarre levels. Abuse of state power, nepotistic control of contracts related to infrastructure, the looting of mineral resources, real estate property scandals—they’ve got it all, even if India is not a Hindu Pakistan. Not yet anyway.

Since 1991, “reform” in India has meant only one thing: unbridled commerce and getting the state out of the economy. Not surprisingly then, nothing is being done to reform public institutions, which are a scandal in themselves. Efficient public administration? Don’t even think about it. In a nutshell, India is a chaotic economic dynamo and yet, in some sense, not even an emerging power, not to speak of a superpower.

Russia, too, is still trying to find the magic mix, including a competent state policy to exploit the country’s bounteous natural resources, extraordinary space, and impressive social talent. It must modernize fast as, apart from Moscow and St. Petersburg, relative social backwardness prevails. Its leaders remain uneasy about neighboring China (aware that any Sino-Russian alliance would leave Russia as a distinctly junior partner). They are distrustful of Washington, anxious over the depopulation of their eastern territories, and worried about the cultural and religious alienation of their Muslim population.

Then again the Putinator is back as president with his magic formula for modernization: a strategic German-Russian partnership that will benefit the power elite/business oligarchy, but not necessarily the majority of Russians.

Dead in the Woods

The post-World War II Bretton Woods system is now officially dead, totally illegitimate, but what are the BRICS planning to do about it?

At their summit in New Delhi in late March, they pushed for the creation of a BRICS development bank that could invest in infrastructure and provide them with back-up credit for whatever financial crises lie down the road. The BRICS know perfectly well that Washington and the European Union (EU) will never relinquish control of the IMF and the World Bank. Nonetheless, trade among these countries will reach an impressive $500 billion by 2015, mostly in their own currencies.

However, BRICS cohesion, to the extent it exists, centers mostly around shared frustration with the Masters of the Universe-style financial speculation that nearly sent the global economy off a cliff in 2008. True, the BRICS crew also has a notable convergence of policy and opinion when it comes to embattled Iran, an Arab Sprung Middle East, and Northern Africa. Still, for the moment the key problem they face is this: they don't have an ideological or institutional alternative to neo-liberalism and the lordship of global finance.

As Vijay Prashad has noted, the Global North has done everything to prevent any serious discussion of how to reform the global financial casino. No wonder the head of the G-77 group of developing nations (now G-132, in fact), Thai ambassador Pisnau Chanvitan, has warned of “behavior that seems to indicate a desire for the dawn of a new neocolonialism.”

Meanwhile, things happen anyway, helter-skelter. China, for instance, continues to informally advance the yuan as a globalizing, if not global, currency. It’s already trading in yuan with Russia and Australia, not to mention across Latin America and in the Middle East. Increasingly, the BRICS are betting on the yuan as their monetary alternative to a devalued U.S. dollar.

Japan is using both yen and yuan in its bilateral trade with its huge Asian neighbor. The fact is that there’s already an unacknowledged Asian free-trade zone in the making, with China, Japan, and South Korea on board.

What’s ahead, even if it includes a BRICS-bright future, will undoubtedly be very messy. Just about anything is possible (verging on likely), from another Great Recession in the U.S. to European stagnation or even the collapse of the eurozone, to a BRICS-wide slowdown, a tempest in the currency markets, the collapse of financial institutions, and a global crash.

And talk about messy, who could forget what Dick Cheney said, while still Halliburton’s CEO, at the Institute of Petroleum in London in 1999: “The Middle East, with two-thirds of the world's oil and the lowest cost, is still where the prize ultimately lies.” No wonder when, as vice president, he came to power in 2001, his first order of business was to “liberate” Iraq’s oil. Of course, who doesn’t remember how that ended?

Now (different administration but same line of work), it’s an oil-embargo-cum-economic-war on Iran. The leadership in Beijing sees Washington’s whole Iran psychodrama as a regime-change plot, pure and simple, having nothing to do with nuclear weapons. Then again, the winner so far in the Iran imbroglio is China. With Iran’s banking system in crisis, and the U.S. embargo playing havoc with that country’s economy, Beijing can essentially dictate its terms for buying Iranian oil.

The Chinese are expanding Iran’s fleet of oil tankers, a deal worth more than $1 billion, and that other BRICS giant, India, is now purchasing even more Iranian oil than China. Yet Washington won’t apply its sanctions to BRICS members because these days, economically speaking, the U.S. needs them more than they need the U.S.

The usual self-description of the system there as “socialism with Chinese characteristics” is, of course, as mythical as a gorgon. In reality, think hardcore neoliberalism with Chinese characteristics led by men who have every intention of saving global capitalism.

At the moment, China is smack in the middle of a tectonic, structural shift from an export/investment model to a services/consumer-led model. In terms of its explosive economic growth, the last decades have been almost unimaginable to most Chinese (and the rest of the world), but according to the Financial Times, they have also left the country’s richest 1% controlling 40%-60% of total household wealth. How to find a way to overcome such staggering collateral damage? How to make a system with tremendous inbuilt problems function for 1.3 billion people?

Enter “stability-mania.” Back in 2007, Prime Minister Wen Jiabao was warning that the Chinese economy could become “unstable, unbalanced, uncoordinated, and unsustainable.” These were the famous “Four Uns.”

Today, the collective leadership, including the next Prime Minister, Li Leqiang, has gone a nervous step further, purging “unstable” from the Party’s lexicon. For all practical purposes, the next phase in the country’s development is already upon us.

It will be quite something to watch in the years to come.

How will the nominally “communist” princelings—the sons and daughters of top revolutionary Party leaders, all immensely wealthy, thanks, in part, to their cozy arrangements with Western corporations, plus the bribes, the alliances with gangsters, all those “concessions” to the highest bidder, and the whole Western-linked crony-capitalist oligarchy—lead China beyond the “Four Modernizations”? Especially with all that fabulous wealth to loot.

The Obama administration, expressing its own anxiety, has responded to the clear emergence of China as a power to be reckoned with via a “strategic pivot”—from its disastrous wars in the Greater Middle East to Asia. The Pentagon likes to call this “rebalancing” (though things are anything but rebalanced or over for the U.S. in the Middle East).

Before 9/11, the Bush administration had been focused on China as its future global enemy number one. Then 9/11 redirected it to what the Pentagon called “the arc of instability,” the oil heartlands of the planet extending from the Middle East through Central Asia. Given Washington’s distraction, Beijing calculated that it might enjoy a window of roughly two decades in which the pressure would be largely off. In those years, it could focus on a breakneck version of internal development, while the U.S. was squandering mountains of money on its nonsensical “Global War on Terror.”

Twelve years later, that window is being slammed shut as from India, Australia, and the Philippines to South Korea and Japan, the U.S. declares itself back in the hegemony business in Asia. Doubts that this was the new American path were dispelled by Secretary of State Hillary Clinton’s November 2011 manifesto in Foreign Policy magazine, none too subtly labeled “America’s Pacific Century.” (And she was talking about this century, not the last one!)

The American mantra is always the same: “American security,” whose definition is: whatever happens on the planet. Whether in the oil-rich Persian Gulf where Washington “helps” allies Israel and Saudi Arabia because they feel threatened by Iran, or Asia where similar help is offered to a growing corps of countries that are said to feel threatened by China, it’s always in the name of U.S. security. In either case, in just about any case, that’s what trumps all else.

As a result, if there is a 33-year Wall of Mistrust between the U.S. and Iran, there is a new, growing Great Wall of Mistrust between the U.S. and China. Recently, Wang Jisi, Dean of the School of International Studies at Peking University and a top Chinese strategic analyst, offered the Beijing leadership’s perspective on that “Pacific Century” in an influential paper he coauthored.

China, he and his coauthor write, now expects to be treated as a first-class power. After all, it “successfully weathered... the 1997-98 global financial crisis,” caused, in Beijing’s eyes, by “deep deficiencies in the U.S. economy and politics. China has surpassed Japan as the world’s second largest economy and seems to be the number two in world politics, as well... Chinese leaders do not credit these successes to the United States or to the U.S.-led world order.”

The U.S., Wang adds, “is seen in China generally as a declining power over the long run… It is now a question of how many years, rather than how many decades, before China replaces the United States as the largest economy in the world… part of an emerging new structure.” (Think: BRICS.)

In sum, as Wang and his coauthor portray it, influential Chinese see their country’s development model providing “an alternative to Western democracy and experiences for other developing countries to learn from, while many developing countries that have introduced Western values and political systems are experiencing disorder and chaos.”

Put it all in a nutshell and you have a Chinese vision of the world in which a fading U.S. still yearns for global hegemony and remains powerful enough to block emerging powers—China and the other BRICS—from their twenty-first century destiny.

Dr. Zbig’s Eurasian Wet Dream

Now, how does the U.S. political elite see that same world? Virtually no one is better qualified to handle that subject than former national security adviser, BTC pipeline facilitator, and briefly Obama ghost adviser, Dr. Zbigniew (“Zbig”) Brzezinski. And he doesn’t hesitate to do so in his latest book, Strategic Vision: America and the Crisis of Global Power.

If the Chinese have their strategic eyes on those other BRICS nations, Dr. Zbig remains stuck on the Old World, newly configured. He is now arguing that, for the U.S. to maintain some form of global hegemony, it must bet on an “expanded West.” That would mean strengthening the Europeans (especially in energy terms), while embracing Turkey, which he imagines as a template for new Arab democracies, and engaging Russia, politically and economically, in a “strategically sober and prudent fashion.”

Turkey, by the way, is no such template because, despite the Arab Spring, for the foreseeable future, there are no new Arab democracies. Still, Zbig believes that Turkey can help Europe, and so the U.S., in far more practical ways to solve certain global energy problems by facilitating its “unimpeded access across the Caspian Sea to Central Asia’s oil and gas.”

Under the present circumstances, however, this, too, remains something of a fantasy. After all, Turkey can only become a key transit country in the great energy game on the Eurasian chessboard I’ve long labeled Pipelineistan if the Europeans get their act together. They would have to convince the energy-rich, autocratic “republic” of Turkmenistan to ignore its powerful Russian neighbor and sell them all the natural gas they need. And then there’s that other energy matter that looks unlikely at the moment: Washington and Brussels would have to ditch counterproductive sanctions and embargos against Iran (and the war games that go with them) and start doing serious business with that country.

Dr. Zbig nonetheless proposes the notion of a two-speed Europe as the key to future American power on the planet. Think of it as an upbeat version of a scenario in which the present Eurozone semi-collapses. He would maintain the leading role of the inept bureaucratic fat cats in Brussels now running the EU, and support another “Europe” (mostly the southern “Club Med” countries) outside the euro, with nominally free movement of people and goods between the two. His bet—and in this he reflects a key strand of Washington thinking—is that a two-speed Europe, a Eurasian Big Mac, still joined at the hip to America, could be a globally critical player for the rest of the twenty-first century.

And then, of course, Dr. Zbig displays all his Cold Warrior colors, extolling an American future “stability in the Far East” inspired by “the role Britain played in the nineteenth century as a stabilizer and balancer of Europe.” We’re talking, in other words, about this century’s number one gunboat diplomat. He graciously concedes that a “comprehensive American-Chinese global partnership” would still be possible, but only if Washington retains a significant geopolitical presence in what he still calls the “Far East”—“whether China approves or not.”

The answer will be “not.”

In a way, all of this is familiar stuff, as is much of actual Washington policy today. In his case, it’s really a remix of his 1997 magnum opus The Grand Chessboard in which, he once again certifies that “the huge Trans-Eurasian continent is the central arena of world affairs.” Only now reality has taught him that Eurasia can’t be conquered and America’s best shot is to try to bring Turkey and Russia into the fold.

Robocop Rules

Yet Brzezinski looks positively benign when you compare his ideas to Hillary Clinton’s recent pronouncements, including her address to the tongue-twistingly named World Affairs Council 2012 NATO Conference. There, as the Obama administration regularly does, she highlighted “NATO’s enduring relationship with Afghanistan” and praised negotiations between the U.S. and Kabul over “a long-term strategic partnership between our two nations.”

Translation; despite being outmaneuvered by a minority Pashtun insurgency for years, neither the Pentagon nor NATO have any intention of rebalancing out of their holdings in the Greater Middle East. Already negotiating with President Hamid Karzai’s government in Kabul for staying rights through 2024, the U.S. has every intention of holding onto three major strategic Afghan bases: Bagram, Shindand (near the Iranian border), and Kandahar (near the Pakistani border). Only the terminally naïve would believe the Pentagon capable of voluntarily abandoning such sterling outposts for the monitoring of Central Asia and strategic competitors Russia and China.

NATO, Clinton added ominously, will “expand its defense capabilities for the twenty-first century,” including the missile defense system the alliance approved at its last meeting in Lisbon in 2010.

It will be fascinating to see what the possible election of socialist François Hollande as French president might mean. Interested in a deeper strategic partnership with the BRICS, he is committed to the end of the U.S. dollar as the world’s reserve currency. The question is: Would his victory throw a monkey wrench into NATO’s works, after these years under the Great Liberator of Libya, that neo-Napoleonic image-maker Nicolas Sarkozy (for whom France was just mustard in Washington’s steak tartar).

No matter what either Dr. Zbig or Hillary might think, most European countries, fed up with their black-hole adventures in Afghanistan and Libya, and with the way NATO now serves U.S. global interests, support Hollande on this. But it will still be an uphill battle. The destruction and overthrow of Muammar Gaddafi’s Libyan regime was the highpoint of the recent NATO agenda of regime change in MENA (the Middle East-Northern Africa). And NATO remains Washington’s plan B for the future, if the usual network of think tanks, endowments, funds, foundations, NGOs, and even the U.N. fail to provoke what could be described as YouTube regime change.

In a nutshell: after going to war on three continents (in Yugoslavia, Afghanistan, and Libya), turning the Mediterranean into a virtual NATO lake, and patrolling the Arabian Sea non-stop, NATO will be, according to Hillary, riding on “a bet on America’s leadership and strength, just as we did in the twentieth century, for this century and beyond.” So 21 years after the end of the Soviet Union—NATO’s original raison d’etre—this could be the way the world ends; not with a bang, but with NATO, in whimpering mode, still fulfilling the role of perpetual global Robocop.

We’re back once again with Dr. Zbig and the idea of America as the “promoter and guarantor of unity” in the West, and as “balance and conciliator” in the East (for which it needs bases from the Persian Gulf to Japan, including those Afghan ones). And don’t forget that the Pentagon has never given up the idea of attaining Full Spectrum Dominance.

For all that military strength, however, it’s worth keeping in mind that this is distinctly a New World (and not in North America either). Against the guns and the gunboats, the missiles and the drones, there is economic power. Currency wars are now raging. BRICS members China and Russia have cordilleras of cash. South America is uniting fast. The Putinator has offered South Korea an oil pipeline. Iran is planning to sell all its oil and gas in a basket of currencies, none dollars. China is paying to expand its blue-water Navy and its anti-ship missile weaponry. One day, Tokyo may finally realize that, as long as it is occupied by Wall Street and the Pentagon, it will live in eternal recession. Even Australia may eventually refuse to be forced into a counterproductive trade war with China.

So this twenty-first century world of ours is shaping up right now largely as a confrontation between the U.S./NATO and the BRICS, warts and all on every side. The danger: that somewhere down the line it turns into a Full Spectrum Confrontation. Because make no mistake, unlike Saddam Hussein or Muammar Gaddafi, the BRICS will actually be able to shoot back.

If you wish your letter to be considered for publication in the print magazine, we request you to use a proper name, with full postal address - you could still maintain your anonymity, but please desist from using unpublishable sobriquets and handles

Thank you to all those who have taken the trouble to read the article and share their thoughts. Out of the arguments made here, there are two that perhaps need answering. So here they go.

1. The first part of the article compares outcomes (relative percentages of population of the religions concerned) irrespective of the process that led to those outcomes - whether immigration, relatively faster population growth or conversions. This was for two reasons. One, to put the figure of 2.3 per cent in "numerical perspective", as the article itself explained. The second reason was that outcomes are ultimately what the crux of debate is about. The rest of the article in any case dealt with process - or conversions in this case, from both a contemporary and historical perspective.

2. Some commenters have tried to cast doubts on the reliability of Census 2001. Those who do this should bear in mind that Census 2001 was conducted by a BJP government. Considering the extreme importance that BJP gives to this issue, it would be reasonable to expect that IF it had perceived a problem with the methodology that was distorting the numbers, it would have fixed it. As the article mentioned, BJP or BJP-supported governments have been in power for 10 of the last 40 years, or about a quarter of the time, and the only reasonable conclusion one can arrive at is that any misreporting of numbers, real or perceived, would be marginal and hence, not of importance.

To all other arguments made, my answer is the following: Please read the article again, with particular focus on the quotations of Vivekananda and Monier Williams, and the history of the missionary efforts in Bengal and their outcome.

Thanks and Regards,
Tony Joseph

1/D-77

Apr 27, 2012

02:11 PM

A very realistic and sober appraisal.

Commendations.

The fact of the matter is that we are entering into a phase which could be termed as the pre-final of what could be the world order for a very very long time.

Gowth per se is not unmixed blessings. The 4 BRIC countries each are in some sort of financial doldrums with possible exception of China.

Brazil's growth is heavily commodity driven. Its heavy dependence on export of commodities like iron ore, coffee , sugar etc has dragged its economy to some sort of degrowth on onset of 2008 slow down. This has agravted with command & control slow down in China which accounted for largest part of its raw material & commododity export. Instead of investing big on infrastructure, Brazil concentrated on social welfare. This aproach has its own pro & con. While the country's infrastructures are dated & creaking , a degree of social & political stability has brought some sort of equilibrium.

Russsia of course is an one horse economy - oil. Post glassnost state controlled big industry were sold dirt cheap to cronies who are now a handful of oligarchs & who make Russia look dazzling. Whether Vladimir Putin can withstand the shock of crash in internatioanl oil prices has not yet been tested. One must remember worldwide there there has been frantic oil/gas hunt. With exception of mainland Europe & Japan , their energy hunt is showing results. Shell oil for example may reduce external energy dependence of many a oil-guzzling economies, reducing dependence on Russian oil.

China by & large is the most promising. It may be the only BRIC country which has & will live upto its deserved reputation of top growth economy. Despite large scale incentive to private enterprise , China is the only country where state invested heavily on infrastructure like roads, bridges, railways, airports, housing , telecommunication , surface & water transport & most importantly its human resources. China invested heavily in education & training of its young population. Leaving alone Hong Kong to its pre-war economic system has proved to be an extremely wise move. So China is the only country which looks to be living up to its promise of being the next economic giant.

India growth story has so far been given too much hype. India grew by default with the world wide unprecented economic growth from 2003 through 2008. It failed to cash on this growth revenue to build up infrastuactre. Roads, Railways, major ports, air ports, communication , housing - you name it & its in shambles. Nowhere world in the world metropolitan cities like Delhi , Bombay , Chennai , Kolkata looks so obviously decaying. Indian countryside is living in early last century oblivion. Most important , it failed to develop its fabulous human resources. So though young, major portion of the population is cloistered & immobile. They are largely not educated or ill-educated , hungry , malnourished lot with little skill-sets & therefore unemployable. This young population instead of being engine of growth is & will remain a drag on its growth. On top of it the boom of first decade of the century has spawned a pecular type crony capitalism which thrives on individual contact with the ruling dispensation of the the day. No wonder today with growth rate crashing down to 6 % , these cronies are clueless & crying hoarse about high interest rates , GAAR or retropestive taxes & son , whereas proven history is that cost of money never affects growth. Nor there is proof that rate of taxation retards growth. In any case , Indian oligarchs get their money from public sector banks & very often forgets to repay.

So in my book China looks to be the only one country which can give America a run for their money but will never rival political, economic , cultural & scientific clout of the United States of America.

It must be said that the United States is an amazing country. Development & growth story of today's world - be it economic & human development - has germinated, incubated , nurtured , sustained here. It invariably started there & spread through the world. Even during the reccession of 2008 , it quickly recovered from negative growth to about 2% positive. Remember that for US 2 % is no joke , considering it huge base.

US is & will remain the country which in foreseeable future will write the rules of the development game !

Pepe Escobar's analysis is very shaky; it is not based on "logic", reality or intelisense. USA is a "logical", "creative" and "thinking" country. China on the other hand has few more dollars because its past growth was export oriented because Western Countries had then the "buying" "power". Now the Western Countries buying power is minimal, hence Chinese exports have dried up in the West and diverted to Africa and Latin American countries where buying power is very very low.

China now has to concentrate to home growth, like India has been doing for all these years since independence. Whatever growth has been achieved in India, is solid, but now the growth for China on the home fornt will be on very dody wickets. Chickens will now come home to roost.

It is the character of the people that makes a Country great; Chinese do not have that character. Chines are not "Creative"; though they are "devious"; believe in "stealing" technology; Chinese are "corrupt" and "Selfish". Chinese do not have the "management" faculties. Chinese do not have the "far sight" either.

USA has realised that it needs "Creative" Indians on the cheap for its future research and development and it will provide all the resources.

So, China will not be a "Super" power, nor will "India" be.

USA with help of Britain and other European countries, and its allies in Asia - Japan, India, et el. will retain iys susperiority for a long time to come.

India is nowhere close to break into the group of "developed" nations, irrespective of the noise it makes. With the shackles of caste, class and religion unlikely to go away in another two generations, the political leadership will continue to fail us on every front.

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